Completing the REG-1 in Illinois

The state of Illinois raises revenue by implementing a sales tax on products purchased in the state. Businesses of all sizes need to register with the Illinois Department of Revenue to complete tax registration. This also includes tax-exempt organizations, governmental agencies, and sole proprietors who work directly with Illinois residents.

The sole proprietors include individuals or a husband/wife/civil union. To complete the business registration process, you need to fill out the Illinois Business Registration Application, also known as the Illinois REG-1 form. Here's what you need to know when filling out this form.

Question about completing the Reg-1?

Collecting Sales Tax

If your business has what's called a "sales tax nexus" in Illinois, you must collect sales tax. Nexus is a Latin term that means "sufficient physical presence," within a certain state. Illinois considers your business in sales tax nexus if you fall into any of these categories:

  • You have an office, warehouse, or physical presence for your business in Illinois.
  • You have an employee, contractor, agent, or salesperson in Illinois.
  • You have a third-party affiliate in Illinois.

The good news is that when filling out documents to register your business to pay taxes, Illinois doesn't charge one cent to do so. What's even better is that this permit is a one-time registration, so you never need to renew it.

Keep in mind that there are exceptions for certain businesses, as it depends on what you're selling. If you're offering a service, such as consulting or plumbing, you're probably off the hook, as Illinois generally doesn't tax services. The exception to this rule is if you're selling a product as well, such as parts or tools, as you would charge tax for those.

Getting Started

If you have sales tax nexus in Illinois, you must apply for an Illinois sales tax permit. However, if you're still unsure if you need to register your business for tax registration in the state, a business consultant can help you.

The Illinois Department of Revenue processes applications and supplies registration certificates and taxpayer IDs for businesses that operate in the state. You can complete the tax registration in one of three ways: electronically, by paper mail, or by visiting one of the regional field offices. To do so electronically, create an online account on the Illinois Department of Revenue's MyTax Illinois website and complete the registration. Once completed and submitted, this option takes between one to two business days to process.

If you prefer to send in your documentation through the mail, either call the toll-free number at 800-356-6302 or visit an Illinois Department of Revenue office in person to obtain the paperwork if you don't have a printer. You can also visit the Illinois Department of Revenue's website to print out the Illinois Business Registration Application (also known as the REG-1 form). When it comes to the Illinois REG-1 instructions, you must complete all the pertinent fields and mail it to the following address:

Illinois Department of Revenue
P.O. Box 19476
Springfield, Illinois 62794-9476

The mail-in documentation typically takes up to eight weeks to process. You can also visit one of its six regional offices, which are in Chicago, Des Plaines, Fairview Heights, Marion, Rockford, and Springfield, and drop off the paperwork.

The information you need to provide on these documents includes the following:

  • Type, name, address, and phone number of the business.
  • Name of all your owners and officers.
  • Description of business activities.
  • Date business activities began or will begin.
  • Federal Employer Identification Number (FEIN).
  • Address of all Illinois-based locations where your business is located.

If for whatever reason you do not receive your forms promptly, call the Illinois Department of Revenue directly at 217-785-3707.

Registering Specific Types of Businesses

Depending upon the type of business you have, you might need to fill out other types of paperwork for special tax requirements. These requirements pertain to types of products the state of Illinois regulates, such as alcohol and tobacco, as well as transportation systems operated by the state, such as highways. If you fail to register for a tax in regards to your business activity, the Illinois Department of Revenue will inform you that you must fill out additional tax documentation.

Some of the types of businesses you need special tax documentation for include:

  • Liquor information (Schedule REG-1-A).
  • Cigarette and tobacco products information (Schedule REG-1-C).
  • Gas use tax self-assessing purchaser (Schedule REG-1-L).
  • Owner and officer information (Schedule REG-1-O).
  • Responsible party information (Schedule REG-1-R).
  • Telecommunications tax location information (Schedule REG-1-T).

Receiving Your Tax ID

Once the Illinois Department of Revenue reviews all your documentation and deems it valid, you should receive a unique state taxpayer ID and certificate of registration in the mail. The state tax ID is necessary if you plan to hire any employees in the state of Illinois and if you plan to sell taxable goods and services anywhere in the state. You must post the certificate in a prominent location somewhere in your place of business.

A hand holding an assortment of monetary bills and coins.

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Updating Your Information

If you need to update your information, such as change an address, add a location, or note an ownership change, you must update your registration information. There are three ways you can complete this process:

  • Call the Illinois Department of Revenue directly on weekdays between 8 a.m. and 4:30 p.m.
  • File electronically through the MyTax Illinois website.
  • Visit one of the six offices.

It's important to keep this information valid, since failing to do so can cause your tax returns and payments to not be processed promptly. You might also not receive forms or information dealing with tax law changes as well as tax bills or notices.

If you need further assistance when it comes to REG-1 Illinois, contact us at Pasquesi Sheppard. Our accounting experts work closely with private businesses and their owners, high-net-worth families, and non-profit organizations to help them understand financial and tax situations. We can navigate you through the protocols necessary when setting up your business and help you determine what type of paperwork you need to submit for sales tax in the state.

If your business has what's called a "sales tax nexus" in Illinois, you must collect sales tax. Nexus is a Latin term that means "sufficient physical presence," within a certain state. Illinois considers your business in sales tax nexus if you fall into any of these categories:

  • You have an office, warehouse, or physical presence for your business in Illinois.
  • You have an employee, contractor, agent, or salesperson in Illinois.
  • You have a third-party affiliate in Illinois.

The good news is that when filling out documents to register your business to pay taxes, Illinois doesn't charge one cent to do so. What's even better is that this permit is a one-time registration, so you never need to renew it.

Keep in mind that there are exceptions for certain businesses, as it depends on what you're selling. If you're offering a service, such as consulting or plumbing, you're probably off the hook, as Illinois generally doesn't tax services. The exception to this rule is if you're selling a product as well, such as parts or tools, as you would charge tax for those.

Getting Started

If you have sales tax nexus in Illinois, you must apply for an Illinois sales tax permit. However, if you're still unsure if you need to register your business for tax registration in the state, a business consultant can help you.

The Illinois Department of Revenue processes applications and supplies registration certificates and taxpayer IDs for businesses that operate in the state. You can complete the tax registration in one of three ways: electronically, by paper mail, or by visiting one of the regional field offices. To do so electronically, create an online account on the Illinois Department of Revenue's MyTax Illinois website and complete the registration. Once completed and submitted, this option takes between one to two business days to process.

If you prefer to send in your documentation through the mail, either call the toll-free number at 800-356-6302 or visit an Illinois Department of Revenue office in person to obtain the paperwork if you don't have a printer. You can also visit the Illinois Department of Revenue's website to print out the Illinois Business Registration Application (also known as the REG-1 form). When it comes to the Illinois REG-1 instructions, you must complete all the pertinent fields and mail it to the following address:

Illinois Department of Revenue
P.O. Box 19476
Springfield, Illinois 62794-9476

The mail-in documentation typically takes up to eight weeks to process. You can also visit one of its six regional offices, which are in Chicago, Des Plaines, Fairview Heights, Marion, Rockford, and Springfield, and drop off the paperwork.

The information you need to provide on these documents includes the following:

  • Type, name, address, and phone number of the business.
  • Name of all your owners and officers.
  • Description of business activities.
  • Date business activities began or will begin.
  • Federal Employer Identification Number (FEIN).
  • Address of all Illinois-based locations where your business is located.

If for whatever reason you do not receive your forms promptly, call the Illinois Department of Revenue directly at 217-785-3707.

Registering Specific Types of Businesses

Depending upon the type of business you have, you might need to fill out other types of paperwork for special tax requirements. These requirements pertain to types of products the state of Illinois regulates, such as alcohol and tobacco, as well as transportation systems operated by the state, such as highways. If you fail to register for a tax in regards to your business activity, the Illinois Department of Revenue will inform you that you must fill out additional tax documentation.

Some of the types of businesses you need special tax documentation for include:

  • Liquor information (Schedule REG-1-A).
  • Cigarette and tobacco products information (Schedule REG-1-C).
  • Gas use tax self-assessing purchaser (Schedule REG-1-L).
  • Owner and officer information (Schedule REG-1-O).
  • Responsible party information (Schedule REG-1-R).
  • Telecommunications tax location information (Schedule REG-1-T).

Receiving Your Tax ID

Once the Illinois Department of Revenue reviews all your documentation and deems it valid, you should receive a unique state taxpayer ID and certificate of registration in the mail. The state tax ID is necessary if you plan to hire any employees in the state of Illinois and if you plan to sell taxable goods and services anywhere in the state. You must post the certificate in a prominent location somewhere in your place of business.

Updating Your Information

If you need to update your information, such as change an address, add a location, or note an ownership change, you must update your registration information. There are three ways you can complete this process:

  • Call the Illinois Department of Revenue directly on weekdays between 8 a.m. and 4:30 p.m.
  • File electronically through the MyTax Illinois website.
  • Visit one of the six offices.

It's important to keep this information valid, since failing to do so can cause your tax returns and payments to not be processed promptly. You might also not receive forms or information dealing with tax law changes as well as tax bills or notices.

If you need further assistance when it comes to REG-1 Illinois, contact us at Pasquesi Sheppard. Our accounting experts work closely with private businesses and their owners, high-net-worth families, and non-profit organizations to help them understand financial and tax situations. We can navigate you through the protocols necessary when setting up your business and help you determine what type of paperwork you need to submit for sales tax in the state.